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Understanding Māori Land Trusts - what is a Trustee's role?
Māori freehold land can often be complicated to manage due to the need to balance the interests of many owners and the whakapapa connection that owners hold with the land. It is common to have a trust established over Māori land blocks to help ensure the land is properly managed in the best interests of all owners.
I’m a Trustee – what are my duties?
Generally, trustees for Māori land have the same duties as under the Trusts Act 2019 including:
- To act in the best interests of the beneficiaries of the Trust
- To act unanimously. In the case of Māori land Trusts, Trustees may act by majority where there are 3 or more Trustees;
- To act impartially toward all beneficiaries;
- Knowing, and acting in accordance with, the Trust Deed;
- Investing trust assets prudently;
- To avoid a conflict of interest between the interests of the Trustee and the interests of the beneficiaries;
- Not to exercise power for the Trustee’s own benefit; and
- To keep core trust documents, including good accounts and records and notify beneficiaries of basic trust information
It is important to note that these duties apply to all trustees, regardless of their level of experience. Trustees need to be aware of their duties and ensure these obligations are met as they may be liable for acting in breach of their trustee obligations.
Trustees over Māori land may have additional responsibilities under tikanga, which you can learn more about here.
I’m a beneficiary – what can I do if I think a trustee is acting in breach of their duties?
It can be difficult to navigate your options when you believe a Trustee is not fulfilling their duties. Beneficiaries can hold Trustees accountable in a number of ways.
Beneficiaries have the right to request trust information from Trustees
Trustees may withhold information from the beneficiaries in certain circumstances, but there is a presumption that trust information should be disclosed. Beneficiaries may request and review trust information to understand the way the trust is being managed and can contact the Trustees if they have any concerns.
Beneficiaries may make an application to the Māori Land Court to enforce the Trustees’ duties
The Court has the power to order the Trustees to file a written report about the management of the Trust and appear in Court for questioning on that report.
The Court may also enforce the duties of the Trustee through an injunction or other means. This process may be more time consuming but can be a good way to remind Trustees of their duties without removing them from their role.
Application to the Māori Land Court to remove Trustees
This option may be useful where the Trust has become dysfunctional and there is a lot of conflict. The Court can only exercise the power to remove a Trustee in particular circumstances.
Māori Land Court Dispute Resolution
Trustees and beneficiaries can apply to use the Māori Land Court Dispute Resolution service. You can read more about that here.
If you believe a Trustee is acting in breach of their duties, it is important to seek legal advice to ensure the issue can be resolved efficiently, and in way that is in the best interests of all parties.
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